Why does the IRS tolerate Hollywood accounting?

[robert_columbia]

@kanicbird

…
The necessity of entertaining the population is often pointed out for ancient Rome and the coliseum so there is precedent. They are also influential on the population and the studios can and have influenced the minds of the viewers, started trends, etc. and it is in general the best interest of the government to be on the good side of the studios as the studios reach so many of the people directly and indirectly. The studios are a fairly powerful force that the government would seem to rather have on their side.

Right. Rome had “bread and circuses”. America has agricultural subsidies and tolerance of Hollywood accounting. Human nature doesn’t change.

[Colibri]

@chgojack

That’s how the Jews roll. From Hollywood to Wall Street. Wake up already.

[Moderating]

chgojack, trolling is not permitted on this board. You’re gone.

Colibri
General Questions Moderator

PS. Note that this thread was started in 2012 before being resurrected by the troll-post.

[Loopus]

Winston Groom, writer of the book that the film Forrest Gump was based on, threatened a lawsuit over the 3% of the profits that he had been promised, after learning that the studio was claiming to have taken a loss. He eventually settled the suit under undisclosed terms coincidentally around the same time that the studio agreed to very favorable terms (to Groom) to purchase the rights to Groom’s Gump & Co., the sequel.

My guess would be that Groom’s lawsuit only went anywhere because the movie was so huge and he had the sequel to hold hostage.

http://www.deseretnews.com/article/422995/PARAMOUNT-FINDS-AUTHOR-OF-GUMP-IS-NO-BONEHEAD.html?pg=all

'Gump,' a Huge Hit, Still Isn't Raking In Huge Profits? Hmm. (Published 1995)

[glowacks]

Movies themselves do not make money as stand-alone businesses. All the people involved in making, promoting, distributing, etc., the movie are employees or contractors of the movie, and get their percentage of revenue share structured in a way such that all the revenue above a certain level is distributed in compensation, making it impossible for the film as an entity to make money. It’s not particularly complex, it just requires some thought ahead of time when making contracts with everyone.